Accelerated Onboarding at LY2 and Central Taiwan Science Park Data Center Momentum Set to Drive Full-Year Performance to New Highs
Driven by accelerated client onboarding at LY2 and the momentum of the CTSP Huwei facility project, Chief Telecom Chairman Jerry Shao (right) and President Johnny Liu (left) are confident that full-year operations will hit record highs.
TAIPEI, TAIWAN – Chief Telecom (TPEx: 6561), Taiwan’s leading provider of IDC and cloud services, today announced its financial results for the first half of 2026 (H1 2026). The company reported consolidated revenue of NTD2.03 billion and earnings per share (EPS) of NTD7.57, demonstrating steady operational growth momentum.
Jerry Shao, Chairman of Chief Telecom, highlighted that driven by the dual engines of accelerated client onboarding at the LY2 Intelligent Data Center and the October groundbreaking of the new facility in the Central Taiwan Science Park (CTSP) Huwei Park, Chief Telecom is poised to enter a robust 5-year high-growth period.
Reviewing H1 performance across product lines, Cloud Application Services revenue reached NTD351 million, representing a 10.5% Year-over-Year increase, and IDC Data Center Services revenue reached 895 million. These two major revenue streams continue to serve as the dual drivers powering Chief Telecom’s business growth. Overall gross margin for H1 stood at 48.6%, primarily reflecting the full monthly equipment depreciation expenses for the LY2 Data Center recognized since January 2026, as well as a higher baseline from several one-off revenue recognitions in the same period last year. In Q2 2026, Chief Telecom recorded revenue of NTD1.04 billion and an EPS of NTD3.88, both outperforming Q1 metrics.
Shao noted that Alphabet (Google’s parent company) recently reported its Q2 financial results, showcasing explosive 82% growth in its cloud division fueled by strong AI infrastructure and enterprise demand. Coupled with global top 9 Cloud Service Providers (CSPs) upwardly revising their 2026 aggregate capital expenditures (CapEx) to $830 billion—a 79% YoY increase—all indicators point to sustained momentum in AI data center construction. This reflects the expanding AI cloud ecosystem and demonstrates that AI infrastructure has become a long-term strategic core for global tech leaders, consistently driving the expansion of global data center footprints.
“With new clients accelerating deployment and the increasing proportion of high- Gross Profit Margin services, our full-year gross profit margin target remains above 50%. The company’s operations will show marked quarter-over-quarter growth, with the second half of the year significantly outperforming the first half,” stated Shao, expressing strong confidence in achieving record-high full-year revenue and profitability.
Johnny Liu, President of Chief Telecom, further explained that following the resolution of client onboarding delays, occupancy at the highly anticipated LY2 Intelligent Cloud Data Center has picked up significantly since June, making substantial monthly revenue contributions. Occupancy at LY2 is expected to smoothly reach 80% by the end of this year, with further upside in subsequent years, serving as a powerful growth engine for medium-to-long-term revenue and profitability.
With the surge in AI and high-performance computing (HPC) demands, enterprise requirements for data centers extend far beyond speed. Potential client segments now include multinational AI compute providers and enterprises seeking geographical disaster recovery (DR) solutions. To accelerate collaboration with the Ishikari Data Center in Hokkaido, Chief Telecom Senior Vice President, Tony Zhang recently led a delegation to visit the Ishikari facility and met with Tsuyoshi Mihashi, Vice Governor of Hokkaido. Through ultra-high-speed networks connecting Taipei and Hokkaido, Chief Telecom aims to build an Asia AI Computing Corridor, jointly launching a new cross-border AIDC strategic layout.
Furthermore, groundbreaking for the brand-new data center in CTSP Huwei Park is scheduled for mid-October 2026, with commercial operations planned for H2 2028. Currently, Letters of Intent (LOIs) signed by prospective clients have already exceeded 50% of available capacity, reflecting intense market demand for AI computing infrastructure. Looking ahead over the next five years, Chief Telecom is actively deploying next-generation AIDCs, pursuing international partnership opportunities, and leveraging rigorous compliance and robust infrastructure to welcome the growth era of AI with optimism.
